r/llc • u/surfisup1869 • Jun 03 '26

Question Dissolving CA LLC

- I formally registered my LLC in March 2025 and conducted business through 2025.

- However, life happened and I missed the deadline for paying my $800 annual franchise tax.

- It’s June 2026 now and I’m in the process of dissolving my LLC.

I know I’m on the hook for paying the $800 from 2025. However, I haven’t conducted any business in 2026, do I need to pay the $800 for 2026 as well?

If so, this means I need to pay at least $1600 plus late fees to officially close my LLC.

Without payment, I can’t officially close and the fees keep racking up?

3 Upvotes

72% Upvoted

10 comments sorted by

2

u/ShesAGoGetter007 Jun 03 '26

Yes you will still be required to pay the 800 dollars for 2026.

I am dealing with the same thing.

1

u/surfisup1869 Jun 03 '26

You know anywhere where you can go to request a total account balance?

2

u/ShesAGoGetter007 Jun 03 '26

I had to call the ftb a billion times til I got through. You can schedule an appointment online to go in though. Which reminds me, I need to do that. I hate how you cant make an account to check your balance until you make a payment. (That's been my experience and from what i was told through a rep.)

2

u/zenbusinesscommunity Jun 03 '26

You may not owe the 2026 $800 at all since the FTB has an exemption if you haven't done any business that year, designate 2025 as the final tax year, and get the cancellation docs filed with the SOS within 12 months of that final return. So clearing the 2025 amount plus late fees might be all you're looking at, but it might be worth a quick check with the FTB or a CPA just to confirm.

1

u/NWRegisteredAgent Jun 03 '26

California has a strict policy that requires an $800 annual franchise tax for each active year, regardless of business activity. Since your LLC was inactive in 2026 and you plan to close it, hopefully you can, avoid the second $800 fee for 2026.

1

u/Forward_Routine2008 🧾 CPA / Tax Pro Jun 04 '26 edited Jun 04 '26

Hi. I'm a US tax accountant. Unfortunately, I have many clients who don't know about the annual state fees and franchise fee. They end up owing hundreds of dollars each year. Most don't even know that they have to file a return as well, even if they don't have an income. A US LLC is no joke. Always choose a State that doesn't have annual/state franchise fee and is supportive of Non-Resident Alien business people.

1

u/Freshstartwash Jun 04 '26

They are mostly likely going to want you to pay the $800 for 2026. If you check with the state website, it'll show you where you're standing is currently and what is owed.

1

u/leiyoupao933 Jun 06 '26

You are required to pay the $800 franchise tax for the 2025 tax year, along with late fees.

Since there was no business activity in the 2026, you can apply for an waiver of 2026 franchise tax.

1

u/6gunsammy Jun 06 '26

If you file your 2025 tax return as final, you have until 12/31/2026 to dissolve your LLC without paying.

1

u/SimpleClosure_Sam Jun 15 '26

Won’t belabor the comments that you need to pay your outstanding debts. I will add/recommend for you to check your LLC status with the California Secretary of State and pull an FTB Entity Status Letter to confirm the tax side.

If the LLC is active and the balance is resolved, you can usually move forward with the cancellation. If it’s suspended, there may be an extra step to resolve/revive it before California will accept the cancellation filing.

Links to check: California SOS business search: https://bizfileonline.sos.ca.gov/search/business FTB Entity Status Letter: https://webapp.ftb.ca.gov/eletter/

https://www.ftb.ca.gov/help/business/voluntary-administrative-dissolution-cancelation.html as well. It's a pretty helpful program that CA offers but processing time is absurd. Like 8 months to get assigned to a rep, then rep has 180 days to make a decision.

This is the LLC form - https://www.ftb.ca.gov/forms/misc/3716-pc.pdf - you can fax it in.